Sportswear brand On is 'listening and learning' in China after Mbappe's misstep

Sportswear brand On is in close contact with its China teams and with Kylian Mbappe, the face of its push into soccer, after his comments referring to Mao Zedong caused a backlash there, ‌co-CEO Caspar Coppetti said on Tuesday. "We're speaking to government, we're speaking to landlords, we're obviously speaking to Kylian and his team, and most importantly, we're listening to the consumer," Coppetti said in an interview with Reuters.

Asked how the Swiss company is changing its approach to marketing in China, Coppetti did not provide details, but said the company planned to launch its ‌first soccer products in 2027. On signed the French player as a global ambassador in September, entering the world's biggest sport in a move that raised the running ‌shoe brand's profile. "We're in listening and learning mode right now," said Coppetti.

On, which was founded in 2010, has built its brand through big-name athlete tie-ups, most notably Swiss tennis legend Roger Federer, who in 2019 bought a stake in On and became the brand's top ambassador, helping design its tennis shoes. ON EXPECTS SALES GROWTH TO ACCELERATE

On raised its 2026 gross margin forecast after beating third-quarter sales estimates, as new ⁠shoe launches and ​a clothing collection advertised by American actor Zendaya ⁠drove sales. It kept, however, its annual sales forecasts of between 3.47 billion Swiss francs and 3.56 billion Swiss francs ($4.24 billion and $4.35 billion).

On's US-listed shares fell about 6% in early trading as direct-to-consumer and Asia-Pacific sales ⁠grew less than expected during the quarter. The stock has fallen nearly 20% this year. The company's direct-to-consumer sales were up 24.8% on a constant currency basis, while wholesale sales rose 13.2% from a year ​ago.

"The poor stock performance likely reflects some disappointment that guidance was not raised and the tension between investors wanting faster growth and some lift on the bottom ⁠line," said Neil Saunders, managing director at GlobalData. The brand, which has been emphasizing its commitment to "premium" prices and avoiding discounting, sells shoes starting at $160 and leggings at $120.

On has been drawing in young shoppers in France, ⁠Italy, ​and Spain, Coppetti said, as 16- to 24-year-olds embrace the gym. The company has grown fast and increased its store numbers globally, taking market share from bigger rivals such as Nike and Adidas.

It expects fourth-quarter sales growth to accelerate, even as it avoids discounting, and said its holiday campaign was underway and new products were gaining traction. For the ⁠quarter ended September 30, sales in the Americas, which account for more than half On's revenue, were up about 12.4% on a constant currency basis, while in ⁠Asia-Pacific region they were up 31.9%.

On now expects ⁠fiscal 2026 gross profit margin to be around 67.5%, or about 66%, excluding US tariff refunds, compared with its previous forecast of at least 65%. The company posted third-quarter sales of 931.4 million Swiss francs, compared with analysts' estimates of 929.3 million Swiss francs, according ‌to data compiled by ‌LSEG.

($1 = 0.8192 Swiss francs)